Finance declining jobs but there is a silver lining
Sunsuper Chief Economist Brian Parker
A recent Sunsuper report on the Australian labor market found that the Hayne Royal Commission revelations hit the financial services market hard, with demand for jobs in industry down 9.6% year-on-year .
The report, (formerly the Kinetic Super Job Index), flagged financial services as “the worst performing industry of 2018”. Sunsuper’s chief economist Brian Parker said declining demand for jobs in the industry came as no surprise.
“The royal commission and its aftermath appear to have an ongoing impact on demand for employment and career opportunities in the sector,” Parker said in a statement.
There is a silver lining for the industry, he continues, as the decline stabilized in the second half of 2018 and even returned to positive territory in December.
âThe only solace from these results is that demand started to stabilize in the last quarter of 2018 (growing 1.6%), suggesting that the worst may be over and some rebuilding could take place in the near future. over the coming year, âthe statement read.
Talk to Professional plannerParker says that even though it is “too early to tell,” he suspects the final recommendations of the Royal Commission on Misconduct in Banking, Pensions and Financial Services, which are due to be released on Monday. , will not cause another serious drop.
âWe certainly can’t rule it out,â Parker says. âBut the fact that there has already been a revival so close to the Royal Commission Final Report suggests that the worst may be over. Recommendations can be difficult, but they’re unlikely to be any worse than what we’ve seen and heard before.
Likewise, Parker does not see a likely change of government as a reason to believe that the roles of financial services will diminish.
“Will a Labor government make the banking and financial environment significantly worse than it is?” he asks. “The answer is no, I don’t think it would.”
The Sunsuper Australian Job Index “measures and tracks digital job postings on job boards, employer career portals and recruitment company websites,” the report says.
Fabian Ruggieri, senior consultant at Kaizen Recruitment, says that while the exodus of banks from wealth management is a factor, the movement in the insurance industry is also behind the decline. He points to the recent consolidation of life insurance companies and the âreduction in insurance commissions for financial advisersâ as determining factors. Parker agrees.
âThe effect of the insurance industry here is likely,â Parker says.
A structural change
Parker recognizes other global trends that have shaped the movement in investigation, including technology.
âThe influence of technology is interesting,â he says. “One of the things that emerges from the survey is a significant shift in jobs from clerical and administrative roles to professional service jobs.”
The survey notes this âstructural change in white collar occupationsâ.
“The index of office and administrative workers fell by 2.4% in 2018, while the demand for professionals increased by 16.2%,” said the statement from Sunsuper. âWhat we are seeing is a gradual elimination of more process-oriented roles and their replacement with more senior roles requiring higher skills. “
The largest increase in advertised positions occurred in the community and personal service worker category, with a 30.6% increase in year-over-year advertisements. Machine operators and drivers make up the majority of survey announcements, followed by technicians and trades, then professionals.